The Implementation Of The Franchise, Piped Natural Gas Price Mechanism And Its Management

This paper summarizes the natural gas price management experience of the developed countries and analyzes the relationship between the market supply and market demand, and the features of the market structure and the basic factors that influence the price formation by using economics principles. At the same time, analyzes the formation mechanism of the natural gas price, the pricing methods and management methods on the basis of explaining the management pattern of franchise, and sought a method for the natural gas pricing under the system of franchise in order to give an reasonable price which can lay a solid foundation for managing the enterprise effectively, improving competence and industrial development of the natural gas. This paper also includes some measures and suggestions about how to supervise the price of the natural gas by the government.After China joined in the WTO, the step of the Chinese public utility industry turned to market-driven has become fast. Opening the market of the public utility's investment, construction and operation, setting up franchise system under the government permit, is a new way to guarantee the public benefit and safety of public engineering, urge the development of the municipal public utility industry and improve the operation efficiency of municipal public utility industry. Adopting franchise system can fully use the folk capital, foreign fund and personal fund and lessen the finance stress of the government. It can also improve the service quality of the public utility. In addition, the development of the public utility requires lowering the cost and heightening the efficiency. At present, there are no healthiness laws for the management pattern of franchise in domestic. But there are many in foreign countries. And their management level is very high. Shenzhen now is performing the investment and financing system reform. And the pipeline gas is an experimental unit which will adopt franchise system. It is very necessary to explore a management pattern for the franchise system that fit the development of natural gas industry in Shenzhen by using the foreign successful management experience for reference. The price is a core issue in franchise system of municipal public utility industry. In the future, the natural gas will be the important resource for use. The first period of the Guangdong LNG Project will be put into production in 2006. Therefore, making systematic searching on natural gas price mechanism and management and finding a way to increase rationality of price have an important meaning for the development and management of the natural gas industry.The innovation of this paper is the research method of the price mechanism under the franchise system. And the outcome of the research has the practical and guide meaning for the development and the management of natural gas industrial.